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Marvell Technology (MRVL - Free Report) reported mixed results for the fourth quarter of fiscal 2023, wherein the bottom line matched while top line outpaced Zacks Consensus Estimate.
California-based Marvell reported non-GAAP earnings of 46 cents per share matching the Zacks Consensus Estimate. The semiconductor company reported revenues of $1.42 billion, which surpassed the consensus mark of $1.40 billion.
However, the non-GAAP earnings per share fell 8% from the year-ago quarter while revenues grew 6%. This upsurge can primarily be attributed to substantial growth in all end markets except the data center and consumer market.
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Data center revenues decreased 13% year over year to $497.6 million. The segment accounted for 35.1% of the quarter’s total revenues, highlighting that it is currently MRVL’s largest end market.
Carrier infrastructure revenues, which constituted 19.4% of total revenues, grew 14% year over year to $275.4 million.
Revenues from enterprise networking jumped 39% year over year to $366.3 million and accounted for 25.8% of total revenues.
However, consumer revenues, representing 12.7% of total revenues, declined to $179.8 million from $185.4 million in the year-ago quarter.
Automotive/Industrial revenues jumped 25% year over year to $99.4 million. Revenues from this segment constituted 7% of total revenues.
Marvell’s non-GAAP gross profit rose 2.7% to $900.6 million in the fourth quarter. However, the margin contracted 180 basis points (bps) to 63.5%.
Non-GAAP operating expenses flared up 10.5% year over year to $430.7 million. The non-GAAP operating margin contracted 320 bps to 33.1%.
Balance Sheet and Cash Flow
Marvell exited the fourth quarter with cash and cash equivalents of $911 million compared with the previous quarter’s $723.4 million. The company’s long-term debt totaled $3.91 billion, lower than the previous quarter’s $3.93 billion.
The company generated cash worth $351.5 million and $1.29 billion through operational activities in the fourth quarter and fiscal 2023, respectively.
Marvell returned $51.3 million to shareholders through dividend payouts in the fourth quarter. In fiscal 2023, the company repurchased stocks worth $115 million and paid $204.4 million in dividends.
Full-Year Highlights
For fiscal 2023, Marvell reported revenues of $5.92 billion, indicating a surge of 33% year over year, driven by strong growth in cloud, 5G, auto and enterprise networking segments.
The company reported non-GAAP earnings of $2.12 per share, witnessing an increase of 35%.
Marvell’s non-GAAP gross profit jumped 31.7% to $3.82 billion in fiscal 2023. The margin contracted 40 bps to 64.5%.
Non-GAAP operating expenses were $1.72 billion compared with fiscal 2022’s $1.43 billion. Non-GAAP operating margin expanded 270 bps to 35.5% in fiscal 2023.
Guidance
For the first quarter of fiscal 2024, Marvell expects revenues of $1.300 billion (+/- 5%). The non-GAAP gross margin is likely to be approximately 60%, while non-GAAP operating expenses are estimated to be around $460 million.
The company projects non-GAAP earnings per share for the first quarter to be approximately 29 cents (+/- 5 cents).
Zacks Rank & Stocks to Consider
Marvell carries a Zacks Rank #3 (Hold). Shares of MRVL have lost 29.1% over the past year.
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Marvell (MRVL) Q4 Earnings Match, Revenues Beat Expectations
Marvell Technology (MRVL - Free Report) reported mixed results for the fourth quarter of fiscal 2023, wherein the bottom line matched while top line outpaced Zacks Consensus Estimate.
California-based Marvell reported non-GAAP earnings of 46 cents per share matching the Zacks Consensus Estimate. The semiconductor company reported revenues of $1.42 billion, which surpassed the consensus mark of $1.40 billion.
However, the non-GAAP earnings per share fell 8% from the year-ago quarter while revenues grew 6%. This upsurge can primarily be attributed to substantial growth in all end markets except the data center and consumer market.
Marvell Technology, Inc. Price, Consensus and EPS Surprise
Marvell Technology, Inc. price-consensus-eps-surprise-chart | Marvell Technology, Inc. Quote
Quarter Details
Data center revenues decreased 13% year over year to $497.6 million. The segment accounted for 35.1% of the quarter’s total revenues, highlighting that it is currently MRVL’s largest end market.
Carrier infrastructure revenues, which constituted 19.4% of total revenues, grew 14% year over year to $275.4 million.
Revenues from enterprise networking jumped 39% year over year to $366.3 million and accounted for 25.8% of total revenues.
However, consumer revenues, representing 12.7% of total revenues, declined to $179.8 million from $185.4 million in the year-ago quarter.
Automotive/Industrial revenues jumped 25% year over year to $99.4 million. Revenues from this segment constituted 7% of total revenues.
Marvell’s non-GAAP gross profit rose 2.7% to $900.6 million in the fourth quarter. However, the margin contracted 180 basis points (bps) to 63.5%.
Non-GAAP operating expenses flared up 10.5% year over year to $430.7 million. The non-GAAP operating margin contracted 320 bps to 33.1%.
Balance Sheet and Cash Flow
Marvell exited the fourth quarter with cash and cash equivalents of $911 million compared with the previous quarter’s $723.4 million. The company’s long-term debt totaled $3.91 billion, lower than the previous quarter’s $3.93 billion.
The company generated cash worth $351.5 million and $1.29 billion through operational activities in the fourth quarter and fiscal 2023, respectively.
Marvell returned $51.3 million to shareholders through dividend payouts in the fourth quarter. In fiscal 2023, the company repurchased stocks worth $115 million and paid $204.4 million in dividends.
Full-Year Highlights
For fiscal 2023, Marvell reported revenues of $5.92 billion, indicating a surge of 33% year over year, driven by strong growth in cloud, 5G, auto and enterprise networking segments.
The company reported non-GAAP earnings of $2.12 per share, witnessing an increase of 35%.
Marvell’s non-GAAP gross profit jumped 31.7% to $3.82 billion in fiscal 2023. The margin contracted 40 bps to 64.5%.
Non-GAAP operating expenses were $1.72 billion compared with fiscal 2022’s $1.43 billion. Non-GAAP operating margin expanded 270 bps to 35.5% in fiscal 2023.
Guidance
For the first quarter of fiscal 2024, Marvell expects revenues of $1.300 billion (+/- 5%). The non-GAAP gross margin is likely to be approximately 60%, while non-GAAP operating expenses are estimated to be around $460 million.
The company projects non-GAAP earnings per share for the first quarter to be approximately 29 cents (+/- 5 cents).
Zacks Rank & Stocks to Consider
Marvell carries a Zacks Rank #3 (Hold). Shares of MRVL have lost 29.1% over the past year.
Some top-ranked stocks from the broader Computer and Technology sector are Airbnb (ABNB - Free Report) , Baidu (BIDU - Free Report) , and Fabrinet (FN - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.
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ABNB's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 57.2%. Shares of the company have declined 19.3% in the past year.
The Zacks Consensus Estimate for Baidu’s first-quarter 2023 earnings has been revised 15 cents northward to $2.43 per share over the past 60 days. For 2023, earnings estimates have rose by 6.4% to $11.62 per share over the past 60 days.
BIDU’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 45.5%. Shares of the company have lost 3.1% in the past year.
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FN’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 5.1%. Shares of the company have jumped 22.5% in the past year.